Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for May 17
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for May 17 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily breakout and Short Selling report. It contains Breakout Stocks and Stocks under Significant Accumulation.Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.
These stocks will do very well during bull markets and strong market rallies.
TTD also presents Stocks To Sell or Sell Short.These issues are suitable for aggressive investors willing to take short positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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Total Buy Breakouts so far today - 8
Stocks Screened- 8,200
Bull side - Very few breakouts today as market pulls back slightly.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bullish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bearish
GME, based in Grapevine, Tex., is the largest retailer of new and used games, hardware, entertainment software, and accessories through nearly 4,800 outlets in the U.S. and several other countries. Annual revenues: $5.3 billion. GME breaks out from a six-week flat base today to resume its powerful up trend. So far today, GME is trading 3.4 million shares. Its average daily volume is 2 million shares.
The tape action in the afternoon continued bullish even though the stock market was backing off. TTD's clip of the tape shows a big block of 1,300 shares crossing on a modest up tick to $35.79.
TTD highlighted the stock at our midsession show on the Web.
GME gets most of its sales from new and used video games. Its stores carry an average of 1,000 new titles and 3,500 used ones.
The company also has e-commerce Web sites (GameStop.com, ebgames.com) and publishes Game Informer, a video game magazine that reaches more than 2.7 million subscribers. The company's 2005 purchase of rival Electronics Boutique doubled GameStop's size.
GME's stock is a leader. Since the start of the bull market in 2003, GME ha soared from 5 to 35 - a great move. (see TTD's long-term chart)
TTD had GME as a recent breakout from its base at 28. The stock move to about 34 and the put down its current small base. (see TTD's daily chart)
The stock's TTD momentum indicator (top of the chart) is now bullish and in sync with the stock's move higher today. The accumulation - distribution line is in a solid up trend and making a new high. That indicator's bullish action confirms the breakout.
GME should a "triple-digit" acceleration in quarterly earnings growth. That is often an extremely powerful drive that can send a stock higher.
Net for the fiscal first quarter ended April 30 should soar 100% and in the fiscal second quarter 170%.
Net for the fiscal first quarter should be 16 cents a share, up from 8 cents a year ago. The highest estimate on the Street is at 17 cents a share. Looking ahead to the fiscal second quarter ending July 30, net should be 8 cents a share, up from 3 cents a share a year ago.
GME is benefiting from a flow of new products.
For the fiscal year ending January of 2008, profits should rise 39% to $1.43 a share from $1.03 a share a year ago. The stock sells with a price-earnings ratio of 24 which is low valuation when measured against the earnings growth rate.
Going out to fiscal 2009, profits are projected to climb 27% to $1.82 a share.
Strategy Opinion: GME is a top-notch growth stock. TTD is targeting GME for a move to 44 within the next few months. A protective stop can be placed near 33. TTD rates GME an excellent intermediate-term play because of its powerful earnings outlook and low valuation.
Sponsorship: Excellent. Several 5-star funds hold the stock. They include Fidelity Mid-Cap Stock Fund, Janus Research Fund and Munder Mid-Cap Core Growth Fund. Also, 5-star rated Rainier Small-Mid Cap Equity Fund was the largest buyer recently purchasing 703,000 shares.
Insider Activity: Neutral. Some buying and selling by insiders in recent months, but pretty much even. Currently, 13 analysts follow the stock, 9 have a buy, up from 6 three months ago. UBS has a price target of $44. TTD agrees!
| TTD's Breakout Profile
Rating Gamestop Corp. (GME) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | YES | ||
| Tick Volume | YES | ||
| Price Trend - Daily | YES | ||
| Price Trend - Long Term | YES | ||
| Price Daily Spread | YES | ||
| Base Structure | YES | ||
| Base - A-D | YES | ||
| Earnings-Quarterly | YES | ||
| Earnings-Long Term | YES | ||
| Earnings Outlook | YES | ||
| Industry Group | YES | ||
| Prior Breakout Success | YES | ||
| Fund Sponsorship | YES | ||
| Total Score | 14 | 0 | 0 |
(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work.
(Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Ticker Tape Digest’s Daily List of “Stocks To Sell or Sell Short” ranks stocks well timed to be sold immediately based on daily trading. The list can be used as an alert to reduce current long-term positions.
Shorts from tape action so far today - 4
Stocks Screened - 8,200
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few breakdowns today, but some interesting plays for aggressive bears.
(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)
OPXT, based at Eatontown, N.J., makes optoelectronic components used to assemble fiber optic data and voice communications networks. Annual revenues: $152 million. OPXT falls sharply today on heavy volume after reporting fiscal fourth quarter net (March 31) below Street estimates. TTD sees the stock as a good trading short for aggressive bears.
So far today, OPXT is trading 1.1 million shares, four times its normal daily volume of 291,000 shares. TTD's clip of the tape shows heavy selling in the morning. A big block of 15,000 shares crossed the tape on a modest down tick to $12.77.
The company reported net for the fiscal fourth quarter of 3 cents a share compared with a loss of 5 cents a share a year ago.
The 3 cents was below the consensus estimate on the Street of 5 cents.
The companies laser diode modules, transmitter/receiver devices, and transceivers are used by other equipment makers in larger multiplexing and digital cross-connect systems, used in data communications and telecommunications.
OPXT's customers include Alcatel-Lucent, 20% of sales and Cisco Systems, 37% of sales. OPXT was formerly the fiber-optic components unit of Hitachi's telecom and data infrastructure group. Hitachi owns 47% of OPXT.
OPXT's stock has been trending lower. The stock's TTD momentum indicator (top of the chart) is extremely bearish. The accumulation - distribution line (bottom of the chart) trends lower indicating clear selling pressure. TTD is targeting the stock for a drop to 8.50 within the next few months, or sooner.
TTD columnist Leo Fasciocco has covered the stock market for over 20 years. His articles appear in many publications. He is also a speaker at the Intershow conferences. He has been on television and radio. He is author of many educational articles about stock investing and the book “Guide To High-Performance Investing.”
For information to subscribe to the Ticker Tape Digest Services call: B. J. Owen at 1-480-926-1680. Distributed by Corona Publishing Enterprises. Ticker Tape Digest Inc. P.O. Box 2044 Chandler, Az. 85244-2044. TTD “Professional Report” is available on the World Wide Web: $100 per month. Password needed. “TTD Professional“ Faxed is $200 per month. The TTD Daily Report is $39.95. Credit cards accepted.
(The information contained has been prepared from data deemed reliable but there is no guarantee of complete accuracy. Ticker Tape Digest Inc. is not affiliated with any broker, dealer or investment advisor. Nothing in this publication constitutes an offer, recommendation or solicitation to buy or sell any securities. Further research is advised. This report is copyrighted and no redistribution is permitted with out permission. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)